Declining Inventory Profitability and Risk of Additional Write-Downs
First written in FY2022. 2 of 6 entries say "Materialised", first in FY2023. Latest entry: FY2026.
Plat'Home moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 37 companies on the "Worse" side.
41 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The ending inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales.」
The company recorded inventory write-downs of ¥4.024 million, up from ¥2.073 million in the previous fiscal year. The impact of the risk of write-downs due to declining profitability has increased. - FY2025MitigatedAnnual report
「The inventory write-down represents a write-down of raw materials due to a reduction in their carrying amount resulting from declining profitability.」
The inventory write-down due to declining profitability was ¥2.073 million, down from ¥5.922 million in the previous year. The possibility of additional write-downs continues to be disclosed. - FY2024WorsenedAnnual report
「The inventory write-down represents a write-down of raw materials due to a reduction in their carrying amount resulting from declining profitability.」
The company recorded an inventory write-down of ¥5.922 million on raw materials due to declining profitability during the fiscal year, up from ¥3.535 million in the previous year. The risk of write-downs has materialised, including the surplus conventional products resulting from the transition to second-generation products. - FY2024-Q2MaterialisedAnnual report
「The company has been promoting the transition of customers from conventional products to second-generation products, and recorded an inventory write-down on surplus conventional products resulting from this transition.」
The company recorded an inventory write-down on conventional products that became surplus as a result of the transition to second-generation products. The write-down was stated to have reduced gross profit by ¥5 million. - FY2023MaterialisedAnnual report
「The inventory write-down represents a write-down of raw materials due to a reduction in their carrying amount resulting from declining profitability.」
The company recorded an inventory write-down of ¥3.535 million on raw materials due to declining profitability, and stated that additional write-downs may be required if sales volumes or disposal prices fall below assumptions. - FY2022First statedAnnual report
「Net realisable value is calculated based on projected future sales volumes and disposal prices, taking into account the company’s sales performance and demand for its products and finished goods. If actual sales volumes or other factors fall below the company’s assumptions, it may be necessary to record additional inventory write-downs.」
The company values inventory based on estimates of sales volumes and disposal prices, and has described for the first time, as a separate significant accounting estimate, the risk of additional write-downs if actual results fall below expectations. During the fiscal year, it also recorded inventory write-downs on raw materials due to declining profitability.